UMB Fund Services, a subsidiary of UMB Financial Co., the listed, Missouri-based multi-bank holding company, added to its holdings JD Clark & Co., an alternative investment firm, in an all-cash deal.

JD Clark’s founder, Jeffery Clark, will remain as its chief executive. The company will be integrated into UMB Fund Services as a wholly owned division, but will continue to operate from JD Clark’s Utah headquarters. JD Clark has $18.5 billion in assets under administration.

“UMB has a history of commitment to growing our fee-based business and this acquisition of J.D. Clark gives us an opportunity to do just that,” said Peter deSilva, president and chief operating officer of UMB Financial Corp. “UMB has a strong balance sheet and has been actively looking for the right acquisition in the alternative investments space, and by combining our businesses, we will be in the top quartile of service providers to alternative investments in the U.S.”

UMB Financial’s shares were up less than two percent, about 70 cents, and were trading at around $46.70 in early afternoon Friday.

A Keefe Bruyette & Woods report posted at Thomson Analytics last month increased its earnings estimate for UMB to $2.30 per share and bumped its 2010 earnings estimate up 50 cents, to $2.75. However, that report also called the bank holding company a potential underperformer. “Although UMB has one of the strongest credit profiles in our coverage universe and capital levels remain very strong,” the report stated, the company’s risk-relationship is unfavorable.

UMB Financial Co., the parent to JD Clark’s buyer, has more than 100 banking centers across Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.